Commission Vote May Fuel Fpl Refund

The Florida Public Counsel`s office has succeeded in its first step to return millions of dollars in excess profits to Florida Power & Light Co. customers.

On Tuesday, the Florida Public Service Commission voted to give itself the authority to determine the amount of profit FPL and other electric utilities can keep.

The commission`s move is in response to Public Counsel Jack Shreve`s petition to stop utilities from keeping windfall profits that have resulted from lower corporate taxes.

Since tax law changes in 1986, FPL and other utilities have received windfall profits because of lower corporate rates. For the past three years, the utility has bargained with the commission and agreed to a certain rate of return.

Shreve, who on Tuesday filed a petition for a hearing to consider lowering FPL`s rate of return, is asking for a 11.4 percent return on equity, down from 13 percent.

Dale Thomas, spokesman for FPL, said the utility never thought the tax savings issue constituted an emergency.

``For the past two years we have stipulated a lower return on equity than the tax savings rule required,`` Thomas said.

Late last month, the PSC staff had recommended against allowing the commission to take emergency action to set the rate of return.

The Public Counsel, which represents utility customers, has complained that utilities have not passed on to customers the tax windfall profits they have reaped since corporate tax rates fell from 46 percent to 34 percent.

Utilities already have to refund any windfall profits higher than the set return.

FPL was ordered to refund to customers $42 million in 1988 windfall profits and interest. Customers received a refund of $54 million in 1987 windfall profits.

FPL REFUNDS

Florida Power & Light`s refunds to ratepayers because of excess profits:

TAX YR. TOTAL REFUND*

1988 $42 million $8-$9

1987 $54 million $13

*One-time refund for average residential customer based on 1,000 kilowatt- hours of electricity.